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This replaces the original Policy Notification (PN)-72 of December 13, 2005, in its entirety.
This notification provides new direction to all procurement personnel on a new process for the
creation, the renewal, and the extension of standing offers (SOs) and supply arrangements
(SAs).
This PN must be read in conjunction with the provisions of applicable chapters of the Supply
Manual (SM), and PN-70. Please refer to Annex A of this document for changes to the Standard Acquisitions Clauses and Conditions (SACC) Manual. In case of conflict between the SM and this PN, the provisions of this PN-72R
will take precedence.
Background
Under the "The Way Forward" initiative, effective April 1, 2005, the use of existing
standing offers and supply arrangements for ten commodity groups identified in PN-70 became mandatory. To support this
initiative, all contracting personnel must ensure that existing and future standing offers
and supply arrangements provide best value, meet client department needs, and demonstrate
tangible savings.
Policy
The creation, renewal or extension of all SOs and SAs requires advance review by either the
designated Commodity Team (CT) Leader identified for those goods or services, or, if such a
team does not exist, by a Regional Reviewer (RR), who is designated for each region. Should a
CT Leader or a RR not exist, the Director, Commodity Management Directorate, Acquisitions
Branch, will designate a reviewer or will be responsible to perform the review. The review
will be conducted in accordance with the procedures and guidelines outlined in this PN. A
list of the CT Leaders and RRs is available on the Standing
Offer Index (SOI) home page (please note that this list will be updated regularly).
Procedures
-
As of August 15, 2006, PWGSC contracting officers must use the Departmental Plain
Language Standard Procurement Documents for the issuance of SOs for goods or services
(ref. PN-79U). -
Effective immediately, PWGSC contracting officers are to send the PDF file (the preferred
format) or related electronic link for SOs or SAs for posting on the SOI Website to rcn.bcoc-ncr.soco@pwgsc-tpsgc.gc.ca, within five working days
of issuance, in accordance with the Standing Offer
Coordinating Office (SOCO) Guide (This Web site is only accessible to PWGSC employees). -
Prior to the creation, renewal or extension of any SO or SA, regardless of value, and
regardless of whether the extension period was pre-approved in the original approval
document, the contracting officer must submit a formal procurement plan, Contract Planning
and Advance Approval (CPAA), or an agreed upon summary document, as applicable to the CT
Leader or RR with a copy to their Manager. The CT Leader or the RR will consider the
rationale and conditions of the procurement plan, CPAA, or a summary document, and make
recommendations for changes where applicable. The CT Leader or RR endorses the procurement
plan, CPAA, or a summary document, prior to submission for approval based upon delegated
authorities. Existing contract approval authorities remain in place. Contracting officers
are encouraged to contact the CT Leader or RR at any time during the procurement process to
obtain input or guidance even before creation of the procurement plan, CPAA or a summary
document. This will expedite the review process and could eliminate having to make changes after the submission to the CT Leader or RR for review.
In addition to standard information, the formal procurement plan, CPAA, or a summary document,
will address the following elements:
- For the creation or renewal of Standing Offers or Supply Arrangements:
- The intended Goods and Services Identification Number and description must be
clearly identified for goods and services, as well as for services related to goods. - The goods or services should not duplicate those already provided under an existing
SO or SA at the national or regional level
(ref. SM 5.182).
If the goods or services are similar, or identical, in nature to goods or services provided
under existing SOs or SAs, a full rationale must be provided to justify creating,
renewing or extending a SO or SA. - Where possible, goods and services should be standardized to allow the SO or SA to
be used by all federal departments and agencies at the national or regional level.
If the request is for approval of a national or regional individual standing offer,
an explanation must be provided to justify why the standing offer could not be
used by other departments. - The procurement plan, CPAA, or a summary document, must address how the proposed
standing offer or supply arrangement will help achieve some or all of the
departmental savings objectives of a 10 percent reduction in price,
50 percent reduction in processing time, and 10 percent administrative cost
saving. It must also highlight how socio-economic factors (such as the Procurement
Strategy for Aboriginal Business, Comprehensive Land Claims Agreements, and the
Green Procurement Policy) have been considered. - The term of the SO or SA should typically be one year in length. For those that require
significant effort or timelines to establish, or may generate better value by offering
longer terms, optional extension years may be included. - The method of selection to identify the supplier(s) who will be given SOs or SAs must
be identified and supported. For commercially available goods or services,
lowest-priced technically acceptable offers usually offer the best value to Canada. Any other method of selection must be fully justified. - If multiple SOs or SAs will be issued, the intended number of suppliers must be
rationalized, explained and supported. To ensure that Canada makes the best use of
its buying power while providing optimal effectiveness and efficiency in support of
client programs and ensuring best value resulting in tangible savings for departments,
a clear ranking and selection process must be identified. If no ranking or selection
method can be identified, a full explanation must be provided
(Ref. SM 5.180 and SM 5.181). - Clear pricing information, maximum value of client call-ups, procedures for call-ups
that exceed the client authority (e.g. contracting officers approved call-ups), volume
discounts and use of Government of Canada Acquisitions Cards as a call-up and payment
instrument must be addressed. - Quarterly reporting on the use of multi-departmental (master) SOs and SAs by suppliers
is mandatory, in the format provided by the Value Management Office (VMO). The VMO
business volume report detailing the data elements is available on the Buy and Sell Website at the following address: https://buyandsell.gc.ca/for-businesses/related-links. Standard Acquisition
Clauses and Conditions (SACC) Manual clauses M7010C and A7010C, as revised at Annex A, must be included in all multi-departmental (master) SOs and SAs,
respectively. As some CT Leaders or RRs may want to continue receiving more complete
or specific information on specific multi-departmental (master) or individual SOs or
SAs to ensure comprehensive commodity management, customized reporting remains the
responsibility of each CT Leader or RR.
- The intended Goods and Services Identification Number and description must be
- For the extension of Standing Offers or Supply Arrangements:
- The requirements of the creation or renewal of SOs or SAs, as listed above, must also be
addressed in the request to extend the existing SO or SA. - The reason(s) to extend the existing SO or SA and the duration of the extension must
be provided. The extension, unless otherwise approved, must be for a period not longer
than one year. - If there are any other changes to the existing SO or SA, e.g., basis of payment,
prices or rates, all changes must be identified and supported. - For repetitive type SOs or SAs, a complete summary of the intended renewal procurement
strategy addressing requirement, method of supply, geographic coverage, schedule and
coordination with CT Leader or RR, plus other important elements must be provided in
the request to amend.
- The requirements of the creation or renewal of SOs or SAs, as listed above, must also be
A summary checklist is provided at Annex B, which will be utilized as
the basis of review by the CT Leader or RR. Annex B also provides
further instructions for contracting officers.
Inquiries
Any inquiries are to be addressed to John Courtney, Commodity Management Directorate,
Acquisitions Branch, either by phone at 819-956-1097 or by e-mail at: john.n.courtney@pwgsc-tpsgc.gc.ca.
Annex A
Changes to the SACC Manual
M7010C (XXXX-XX-XX) Standing Offer Reporting
Usage: Full Text
Remarks:
Unless otherwise authorized by the responsible Commodity Team, use the following clause in
multi-departmental (master) standing offers (SOs) when more than one department is identified
as a user of the standing offer. The clause refers to the business volume report format
provided by the Value Management Office (VMO) and is available on the Buy and Sell website at the following address: https://buyandsell.gc.ca/.
Some Commodity Team (CT) Leaders or Regional Reviewers (RR) may want to receive more
complete or specific information on specific multi-departmental (master) or individual
SOs to ensure comprehensive commodity management. Customized reporting remains the
responsibility of each CT Leader or RR. If a customized format is identified by the CT
Leader or by the RR, the alternate report must contain as a minimum the list of data
elements required by the VMO and the clause below must be modified to reflect the
additional requirements.
Text:
The Offeror must compile and maintain records on its provision of goods, services or both to
the federal government under contracts resulting from the Standing Offer. This data must
include all purchases paid for by a Government of Canada Acquisition Card. The data must be
submitted on a ____________ (The Standing Offer Authority must insert "quarterly basis" or
specify an alternate reporting period) to the Public Works and Government Services Canada
(PWGSC) Standing Offer Authority.
(If an alternate reporting period is required, the Standing Offer Authority must delete the
quarterly periods provided below and define the alternate reporting period.)
Quarterly periods are defined as follows:
1st quarter: April 1, to June 30;
2nd quarter: July 1 to September 30;
3rd quarter: October 1 to December 31;
4th quarter: January 1 to March 31.
Electronic reports must be completed and forwarded to the PWGSC Standing Offer Authority no later
than 15 calendar days after the end of the (The Standing Offer Authority
must insert "quarterly period" or the alternate reporting period as identified in the first
paragraph above). An electronic version of the form in Excel and/or Lotus spreadsheet
format ___________ (The Standing Offer Authority must choose "will be provided
to the Offeror electronically by the Standing Offer Authority" or "is available on the Buy and Sell Website at the following address: https://buyandsell.gc.ca/.)
All data fields of the report must be completed as requested. If some data is not available, the
reason must be indicated in the report. If no goods or services are provided during a given
period, the Offeror must provide a "NIL" report.
Failure to provide fully completed reports in accordance with the above instructions may result
in the setting aside of the Standing Offer and the application of a vendor performance corrective
measure.
*********************
A7010C (XXXX-XX-XX) Supply Arrangement Reporting
Usage: Full Text
Remarks:
Unless otherwise authorized by the responsible Commodity Team, use the following clause in supply
arrangements. The clause refers to the business volume report format provided by the Value
Management Office (VMO) and is available on the Buy and Sell Website at the following address: https://buyandsell.gc.ca/.
Some Commodity Team (CT) Leaders or Regional Reviewers (RR) may want to receive more complete or
specific information on SAs to ensure comprehensive commodity management. Customized reporting
remains the responsibility of each CT Leader or RR. If a customized format is identified by
the CT Leader or by the RR, the alternate report must contain as a minimum the list of data
elements required by the VMO and the clause below must be modified to reflect the additional
requirements.
Text:
The Supplier must compile and maintain records on its provision of goods, services or both to
the federal government under contracts resulting from the Supply Arrangement. This data must
include all purchases paid for by a Government of Canada Acquisition Card. The data must be
submitted on a ______________ (The Supply Arrangement Authority must insert
"quarterly basis" or specify an alternate reporting period) to the Public Works and
Government Services Canada (PWGSC) Supply Arrangement Authority.
(If an alternate reporting period is required, the Supply Arrangement Authority
must delete the quarterly periods provided below and define the alternate reporting period.)
Quarterly periods are defined as follows:
1st quarter: April 1, to June 30;
2nd quarter: July 1 to September 30;
3rd quarter: October 1 to December 31;
4th quarter: January 1 to March 31.
Electronic reports must be completed and forwarded to the PWGSC Supply Arrangement Authority no
later than 15 calendar days after the end of the (The Supply Arrangement
Authority must insert "quarterly period" or the alternate reporting period as identified in
the first paragraph above). An electronic version of the form in Excel and/or Lotus
spreadsheet format ___________ (The Supply Arrangement Authority must choose
"will be provided to the Supplier electronically by the Supply Arrangement Authority" or
"is available on the Buy and Sell website at the following address: https://buyandsell.gc.ca/).
All data fields of the report must be completed as requested. If some data is not available,
the reason must be indicated in the report. If no goods or services are provided during a
given period, the Supplier must provide a "NIL" report.
Failure to provide fully completed reports in accordance with the above instructions may result
in the withdrawal by Canada from the Supply Arrangement, the removal of the Supplier from the
list of qualified suppliers and the application of a vendor performance corrective measure.
Annex B
Summary Check List
Introduction:
PN-72R contains the applicable policy and procedures to be considered before the creation,
renewal or extension of all standing offers and supply arrangements.
Objectives:
The priority of Government of Canada Commodity Management objectives can be summarized as
follows:
- Obtain the best value.
- Reduce procurement, administrative, compliance and reporting costs through more
effective use of other available instruments, including technology. - Reduce the time taken to complete the procurement.
- Consider socio-economic factors.
The Commodity Management Directorate, CT Leaders, or RRs will review each requirement and make
recommendations on contributions to the above objectives.
Instructions for Requesting Contracting Officer:
- Verify that the correct GSIN is being used for goods and services, as well as for
services related to goods. - Validate the existence of any other methods of supply, within the same geographical
area, for similar requirements and determine if the requirement may be combined with
others. The Standing
Offer Index and Help Desk is a good starting point. Another
option is to review the Acquisition Information Service reports by supplier or by
Goods and Services Identification Number, available from the Commodity Management
Directorate on request. - Assess usage reports from suppliers and/or clients to determine the need for the
renewal and/or extension or assess how the value was determined in the case of new
requirements. - In the remarks area of your procurement plan, CPAA, or a summary document, address
all elements outlined in PN-72R, as applicable.Note: If a summary document is being used as an alternative document, the following
statement must be included in the formal procurement plan or CPAA."In accordance with PN-72R the procurement strategy has been reviewed by the Commodity Team
(CT) ______ (insert: team designation) for _____ (state: commodity class). The CT has endorsed
the proposed strategy as acceptable under "The Way Forward" initiative." - Once reviewed by the Manager, send the procurement plan, CPAA, or a summary document, for review
by e-mail with the subject line as follows: PN-72R - GSIN and title - document type and Serial
Number. For example: PN-72R - N7030 - Software- NISO - 660EZ-05005XX as soon as possible to:- Commodity Team Leader; or
- Regional Reviewer; or
- Director, Commodity Management Directorate or designated commodity area.
Note: Contracting officers may contact the reviewer at any time for assistance with
addressing any of the elements to be considered for the review. - A PDF file or related link posted on the Standing Offer Index (SOI), not only provides
basic background tombstone information, it also provides a copy of the entire SO or SA
document in PDF format and related amendment(s) and/or catalogues. SOI has become the
main source of SO and SA information for departments and agencies and fully supports
objectives of greening government operations by allowing printing of applicable pages of
the SO and SA documentation on demand or simply viewing the information directly on
screen. PDF documents are the preferred format for posting on SOI Website. For more
information, please contact the Standing Offer Coordinating Office.
Instructions for the Reviewer:
Reviews will be made by either the Commodity Management Directorate (CMD), CT Leaders or RRs
in conjunction with the commodity OPI in the following manner:
- For all requirements, regardless of value and document type (SO or SA), the review
will take into account the PN-72R requirements; specifically the 10-50-10 savings
objectives, efforts to eliminate duplication, and socio-economic factors. - Upon sending final recommendations, all reviewers will copy the ncr_acqb_cmd_pn72r@pwgsc-tpsgc.gc.ca for
for reporting and sharing purposes. The CMD will also copy this information, if
requested, to the Standing Offer Management Office, Value Management Office,
Office of the Greening Government Operations and the Office of Small and
Medium Enterprises. - All review requests will be responded to within a reasonable time frame
(2-4 business days) and where extensive consultation is required, an agreement
as to resolution timing will be obtained between the reviewer and the originating
contracting officer/manager.